BB starts re-financing scheme for housing sector this week
Monday, 10 September 2007
FE Report
The Bangladesh Bank (BB) is going to start a re-financing scheme for the housing sector from this week aiming to meet one of the basic needs of the people.
"We are hopeful about launching the re-financing scheme for the housing sector within this week," a BB senior official told the FE Sunday.
He also said the central bank will finalise all official formalities with the Delta Brac-Housing Finance Corporation Limited in a couple of days in this connection.
Sources, however, said at least 12 commercial banks and non-banking financial institutions (NBFIs) have already received related documents including deed of agreement forms from the central bank to sign final deal with the BB.
The banks and NBFIs will be able to offer loan to the interested people, belonging to the middle and lower middle class, for purchasing an apartment or construct a dwelling house measuring maximum of 1250 square feet after singing such agreement with the central bank.
Under the BB's scheme, announced earlier, an applicant having a monthly income upto Tk 30,000, will be entitled to receive a maximum Tk 1.50 million as loan for the housing purpose.
Meanwhile, the central bank relaxed its condition relating to the amount of non-performing loan aiming to involve more commercial banks and NBFIs in the scheme.
Banks or NBFIs having non-performing loan not beyond 15 per cent will now be eligible for taking up the re-financing scheme. Earlier, the central bank allowed the financial institutions with 10 per cent of non-performing loan to participate in the scheme.
The central bank has already issued a circular in this connection and asked the managing directors or chief executives of the banks and NBFIs to follow the instruction regarding the default loan position.
The repayment tenure for the housing loan is maximum 20 years with one-year grace period. The rate of interest of the loan is 10 per cent and it will be calculated on a quarterly basis, according to the BB's scheme.
The commercial banks or NBFIs, which will disburse the loan under the scheme, will receive 75 per cent of the amount from the central bank under the re-financing facility, and the remaining 25 per cent will have to be met by the individual bank and NBFI from their own funds.
The people, who are living in six city corporations as well as in the municipality areas of Tongi, Savar, Gazipur and Narayanganj, will be eligible to receive such loan.
The central bank has already created a Tk 3.0 billion fund initially for three years. It will provide Tk 1.0 billion each year under the scheme.
The Bangladesh Bank (BB) is going to start a re-financing scheme for the housing sector from this week aiming to meet one of the basic needs of the people.
"We are hopeful about launching the re-financing scheme for the housing sector within this week," a BB senior official told the FE Sunday.
He also said the central bank will finalise all official formalities with the Delta Brac-Housing Finance Corporation Limited in a couple of days in this connection.
Sources, however, said at least 12 commercial banks and non-banking financial institutions (NBFIs) have already received related documents including deed of agreement forms from the central bank to sign final deal with the BB.
The banks and NBFIs will be able to offer loan to the interested people, belonging to the middle and lower middle class, for purchasing an apartment or construct a dwelling house measuring maximum of 1250 square feet after singing such agreement with the central bank.
Under the BB's scheme, announced earlier, an applicant having a monthly income upto Tk 30,000, will be entitled to receive a maximum Tk 1.50 million as loan for the housing purpose.
Meanwhile, the central bank relaxed its condition relating to the amount of non-performing loan aiming to involve more commercial banks and NBFIs in the scheme.
Banks or NBFIs having non-performing loan not beyond 15 per cent will now be eligible for taking up the re-financing scheme. Earlier, the central bank allowed the financial institutions with 10 per cent of non-performing loan to participate in the scheme.
The central bank has already issued a circular in this connection and asked the managing directors or chief executives of the banks and NBFIs to follow the instruction regarding the default loan position.
The repayment tenure for the housing loan is maximum 20 years with one-year grace period. The rate of interest of the loan is 10 per cent and it will be calculated on a quarterly basis, according to the BB's scheme.
The commercial banks or NBFIs, which will disburse the loan under the scheme, will receive 75 per cent of the amount from the central bank under the re-financing facility, and the remaining 25 per cent will have to be met by the individual bank and NBFI from their own funds.
The people, who are living in six city corporations as well as in the municipality areas of Tongi, Savar, Gazipur and Narayanganj, will be eligible to receive such loan.
The central bank has already created a Tk 3.0 billion fund initially for three years. It will provide Tk 1.0 billion each year under the scheme.